Journal Summary

Emotional Intelligence of Leaders: a profile of top executives

Steven J. Stein and Peter Papadogiannis, Jeremy A. Yip, Gill Sitarenios

Emotional Intelligence at Work

Bar-On 1997, Bar-On and Parker, 2000; Goleman, 1998; Stein and Book: the consruct of emotional intelligence has received considerable attention in apllied and academic test and has been identified as an important part of individuals ability to succesfully contribute to an organizations success.

Emotional Intelligence at Work (contd) While there are several conceptual definitions of emotional intelligence (Bar-On, 1997; Goleman, 1995, 1998; Mayer et al. 2000; Salovey and Mayer, 1989), they all share several theoretical underpinnings,which include: an awareness of ones own emotions, an awareness of emotions in others, an understanding of emotions, and the ability to manage ones own emotions and the emotions of others.

Emotional Intelligence at Work (contd) The two prominent models of EI:

Ability models
EI according to intelligence theory, emphasizing the cognitive elements of EI and uses a performance-based assessment method known as the MSCEIT (Mayer et al., 2002) to discriminate various levels of EI

Skill based models

Is trait-based and encompasses a broader set of competencies A measurement tool that underpins the skills based model is the Emotional Quotient Inventory (EQ-i; Bar-On, 1997

Emotional Intelligence and Leadership

George 2000: Because of constanly changing business environment, leadership position often require more than just task competencies and technical know-how Riggio et al. 2002 : effective leaders possess multiple forms of intelligence, which allows them to respond successfully to various situations. Carmeli, 2003: In particular, scholars have noted that emotional skills are essential for executive level leader performance and become increasingly important (compared to IQ and technical skills) as individuals advance within their organizational hierarchies.

Emotional Intelligence and Leadership (contd)

Rubin et al. (2005) : leaders who were able to perceive emotions more accurately were rated more highly on transformational leadership behavior, suggesting that these types of leaders were more interpersonally sensitive than leaders who rely on contingent reward behavior

Purpose To examine the emotional intelligence (EI) scores of two high profile executive groups in comparison with the general population.

To investigate the executive groups EI scores in relation to various organizational outcomes such as net profit, growth management, and employee management and retention.

Methods
The Emotional Quotient Inventory (EQ-i) was administered to a sample of 186 executives (159 males and 27 females) belonging to one of two executive mentoring associations, the Young Presidents Organization (YPO) and the Innovators Alliance (IA). A series of questions relating to pre-tax operating profits over the past three years, previous years net profit, and various business challenges were asked of each executive.

Hypothesis
1. The executive group will have significantly higher scores on emotional intelligence than the general population.

2. Higher scores on emotional intelligence will be positively related to the degree to which managing others was perceived as less challenging.

Hypothesis (contd)
3. Higher scores on emotional intelligence will be positively related to the degree to which a business challenge was perceived as less challenging 4. Executives who possess higher levels of emotional intelligence will yield higher profit

Results and Discussions

Hypothesis 1 the sample of executives obtained significantly higher total EQ-I scores than the general population that executives demonstrated higher Intrapersonal and general mood composite scale scores Adaptability composite scale was higher among the suggesting that a critical ability for leaders is to understand and respond to internal and external events.

Results and Discussions (contd)

The executive group displayed greater SelfRegard, Self-Actualization Assertiveness and Independence. Each of these subscales reflects skills that facilitate intrapersonal effectiveness On many occasions an executive will be faced with difficult decisions (e.g. layoffs, restructuring, mergers) that are relevant for the organizations continued prosperity; however, the same decision may be detrimental to smaller groups or individuals. In order to make these tough decisions, an executive may at times have to lower his or her social consciousness

Results and Discussions (contd)

Hypothesis 2 and 3 Total EI was positively related to the degree to which a challenge was perceived as easy with respect to managing growth, managing others, training employees, and retaining employees EI showed significant relationships with those challenges that center on interpersonal activities as opposed to more task-oriented challenges such as raising capital and coping with technological change

Results and Discussions (contd) Results and Discussions

Top executives are aware of key emotional information (their own and the people they lead) and use this information in their interactions with others, as well as when delivering their message to the organization. By doing so, executives are able to increase staff motivation and dedication Intrapersonal composite scale, were positively related to managing others, training employees, and retaining employees, thereby indicating that intrinsic

Results and Discussions (contd) Results and Discussions

Hypothesis 4 The participants were divided into two categories: the high profit group and the non-high profit group The EQ-i subscale of Empathy was shown to differentiate between high and low profitability -> effective leaders regularly display empathic behavior to demonstrate their understanding of how others feel, which fortifies working relationships and unifies teams

Results and Discussions (contd) Results and Discussions

Self-Regard defined as the ability to respect and accept oneself as basically good with general feelings of security, inner strength, and self-assuredness Reality Testing and Problem Solving, both underlying the Adaptability composite scale, were also related to profitability Leaders who can realistically and accurately construe external events and who are effective problem solvers tend to be capable of realizing higher profits